The East Asian Financial Cooperation Under The Global Financial Turmoil

The East Asian Financial Cooperation under the Global Financial TurmoilAccording to the Asian financial crisis, the East Asian economies realize that regional financial cooperation is the only approach to prevent financial risk under the condition of global financial liberalization. In order to shake off the predicament of US dollars gradually, regional currency cooperation is feasible to prevent payment difficulties due to insufficient monetary liquidity. Therefore, in the May of 2000, regional Currency Swap Agreement was assigned in 10+3 Financial Ministers' Meeting in Chiang Mai, Thailand. Moreover, during the global financial crisis risen by The U.S. sub-prime mortgage crisis happened in 2007, the stability of euro-zone countries and the confusion of non euro-zone countries also expressed the significance of regional financial cooperation. The happening of the crisis leads to the next cooperation, and then, establishing Asia's foreign exchange reserve pool was agreed in the ASEAN (Association of Southeast Asian Nations) 10+3 Ministers' meeting in Tokyo in the May of 2007, bringing on a new era of East Asia financial cooperation. However, further problems about the East Asian cooperation and how to solve them should be considered carefully. Since of the difference among policy, economy, culture and so on, the East Asian countries should seek for a cooperation method which is appropriate for their own evolution, albeit they can learn some experience from the development of EU and North America Freedom Trade area.This paper from the East Asian financial cooperation, theory and practice of starting, comparative analysis of the Asian financial crisis and the global financial crisis in East Asian financial cooperation, the global financial crisis, the risks to East Asia, East Asian regional financial cooperation which has taken the positive measures, and finally the end of the East Asian financial cooperation select a path, divided into three phases, each implemented by different goals, and gradually in-depth final realization of the unity of the East Asian currencies.Paper is divided into four parts. The first part is an introduction, the first pair of articles on brief De introduction, shows the research background and significance of article, the background of the global financial crisis is only through East Asia financial cooperation can make the countries of East Asia economies witnessed steady development. Followed from the East Asian financial cooperation and monetary cooperation in East Asia, the sum of the relevant literature review, put forward my views in this part. Finally a simple to illustrate the innovation and inadequate.The second part of the contents, first explained the background of monetary cooperation in East Asia, the Asian financial crisis, the International Monetary Fund during the Asian financial crisis, limited assistance, as well as East Asian countries on the U.S. economy's excessive reliance on the promotion of the East Asian countries through the regional financial cooperation to prevent financial crises, followed by the description of the progress made in the East Asian financial cooperation, the establishment of dialogue at all levels, establishment and development of the Chiang Mai Initiative, Asian Bond Market Initiative and the Asian Bond Mutual Fund of established, the recent establishment of the Asian foreign exchange reserves pool. Then described the process of monetary cooperation in East Asia are facing difficulties, the first great East Asian economic disparities, lack of political foundation of mutual trust was followed by the Chiang Mai Initiative and the Asian bond market in less than a few problems.The third part is mainly due to the U.S. subprime mortgage crisis, eventually spreading into a global economic turbulence. East Asia faces risks to the economy, the real economy to reduce the trade surplus, the global decline in investment in East Asia, the U.S. dollar foreign exchange reserve assets shrink, but also deterioration of the macro-economic environment in East Asia. Risks for East Asia, East Asian countries realize the need to strengthen regional financial cooperation to cope with the adverse effects of the financial crisis, East Asian financial cooperation to promote new development. Comparison of the Asian financial crisis in East Asia financial cooperation, global financial crisis, East Asia based in Chiang Mai agreement on the establishment of the Asian foreign exchange reserve bank, signed a settlement agreement money, to promote the bilateral and multilateral free trade, and political trust to further promote the development of financial cooperation in East Asia.The fourth part is mainly discussed in the new situation, the East Asian financial cooperation choice. First, monetary and financial cooperation in East Asia to determine the line "step by step, mutual benefit, equality and cooperation, openness and tolerance" principle. Then gradually in three phases, from the near term can strengthen the Chiang Mai Initiative to strengthen the effective supervision, and promote the Asian bond market, for the realization of the unity of the region lay the foundation for the financial markets. Form the medium term can promote policy coordination, make exchange rate in stability, the establishment of appropriate exchange rate regime, and establish the region as the main currency bond markets in East Asia. Form the long time, parallel sub-regional currency over the currency, eventually forming the East Asian monetary integration.